CARIBBEAN BASIN INITIATIVE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85M00364R000400510014-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: January 4, 2017
• Document Release Date: April 14, 2008
• Sequence Number: 14
• Publication Date: July 29, 1983
• Content Type: REPORT

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Approved For Release 2008/04/14: CIA-RDP85M00364R000400510014-0
Caribbean Basin Initiative
President Reagan presented his'Caribbean Basin Initiative
in a speech at the OAS in February of 1982 and sent legislation
to Congress in March. The House passed it in December of 1982,
but the Congressional session lapsed before it reached the
Senate floor. The legislation was resubmitted on February 22,
1983, and was passed by Congress on July 28.
The CBI consists of three elements. The first is a
twelve-year one-way free-trade arrangement for all goods produced in the Caribbean Basin, except for textiles, apparel,
canned tuna, leather goods, shoes and petroleum products.
The second element would allow US citizens attending
business conventions in the Caribbean Basin to deduct the
reasonable expenses incurred from their income tax. Before a
country can qualify for this "North American" treatment, it
will have to enter into an executive agreement with the US on
the exchange of tax information.
The third CBI element involves foreign assistance. The
last session of Congress approved a supplementary FY 82 request
of $350 million in Economic Support Funds for emergency
balance-of-payments aid. These funds have been totally
obligated. In general, aid levels to the CBI region havc
doubled since 1980.
The CBI legislation lists 27 potential ber.eficiaries and
sets forth a variety of criteria - dealing with self-help
efforts, expropriation, trade. practices, etc. - which the
President must consider in deciding which countries will
benefit. Following Congressional passage and Presidential
signature, the designation process will begin. We currently
plan to have two groups from Washington visit Basin countries,
beginning in late August. The purpose of these trips will be
to discuss with the various governments the nature of the
legislation and how the designation criteria may be met.
July 29, 1983
Approved For Release 2008/04/14: CIA-RDP85M00364R000400510014-0